|Buying a businessPage 2 of 2 (1, 2)|
|Commercial mortgage lending is done on a totally different basis to residential mortgages. (I'm currently trawling through the Estate Agents lies, murky books, surveys and other assorted hurdles to try and get something going having got the funding approved in principle). |
Residential funding is done on a "computer says no" basis only, commercial lending is VERY, VERY personal and in the current climate, very individualised. You can have the perfect business plan and prior experience, but if the broker doesn't like you cos you wore blue the day you met him the answer will be no. On the other hand it can totally go the other way and the strength of your personality can win over a business backer. It's all very strange.
Go talk to the owners as a first step - working a couple of days a week onsite for free as suggested above is a fantastic idea! It gives you a chance to pad out your business plan with the kind of informed detail tha is sure to impress a commercial lender, especially if you include realistic additional income streams such as web sales.
Then go talk to the council, charities and anywhere and everywhere you think could be a potential source of additional funding/grants.
Once you can say to a commercial lender the council will give me X for offering work experience to spotty teens as a social enterprise, the princes trust will give me Y in grant funding, there's an EU pot that will give Z and I'll get £10 a week tax credits for the first 6 months blah, blah, blah - ONLY then you will be in a position to get them to take you seriously.
Or could you do something very similar as a market trader? These have lower overheads than Bricks and mortar shops but still offer you a chance to make a living. As a regular trader you'll be in a position to cash in at Edinburgh festival and perhaps that could give you the seed funding you need to get going?